Market-Credible Staff Compensation Playbook
Learn how to deliver on market-credible compensation for higher ed staff—even amid budget constraints
Growing budgetary pressures, out-of-sector competition, and volatile labor markets have made it all the more difficult for higher education institutions to offer competitive salaries to their staff. Many institutions have already adjusted staff compensation in response to recruitment and retention challenges, which made an initial dent in market misalignment. Now, leadership teams need to develop a longer-term strategy for strengthening the market credibility of staff compensation.
EAB has identified four key imperatives for campus leaders to boost the market credibility of staff compensation and make the most of limited salary dollars:
- Identify their new competitive set(s) for staff talent so they can benchmark themselves against appropriate competitors
- Improve staff salary studies to ensure an accurate understanding of current market position and maximize the ROI of consultants
- Set different pay targets based on their current market position and competition levels for different roles
- Target where to invest limited salary dollars based on their pay targets and institutional talent priorities
All cabinet leaders should review the quick start guides for each imperative before sharing each corresponding tool with the relevant implementation team. For optimal results, EAB recommends using the tools in sequential order. However, leaders may opt to use the tools individually in cases where they have already made progress on certain imperatives or are facing a specific compensation decision point.
Explore each tool below or download the full toolkit.
Customized Talent Competitor Map
Use the Customized Talent Competitor Map to define and/or refine your institution’s distinct competitive set(s) for staff talent. This is foundational for both talent and compensation strategy, as it enables your leadership and HR teams to more accurately assess your institution’s market competitiveness and target recruitment and retention efforts accordingly.
Who should use this tool:
- Cabinet sponsor: Chief human resource officer
- Implementation team: Director of compensation, unit leader(s), hiring manager(s)/recruiter(s)
When to use this tool:
- When developing an HR strategic plan
- When educating campus stakeholders on higher ed’s changing talent imperative
- Prior to conducting a staff salary study or one-off salary market assessment
- Prior to beginning recruitment for a new or vacant position
Salary Study Authenticator
Use the Salary Study Authenticator to ensure your institution’s salary study process reflects your new competitive set(s) for staff talent and changing labor market dynamics. This tool will help your institution get the most out of the time- and cost-intensive salary study process by giving you a more accurate picture of your institution’s current market position on staff compensation.
Who should use this tool:
- Cabinet sponsor: Chief human resource officer
- Implementation team: RFP/consultant selection committee, director of compensation
When to use this tool:
- During the consultant selection process for a salary study
- During the data selection/benchmarking phase of a staff salary study or a one-off market assessment for a certain role
Competitive Pay Target Selector
Use the Competitive Pay Target Selector to determine the right pay targets for different functional areas and/or roles at your institution. This tool will help leaders understand the basics of different pay strategies and then prioritize when to strategically pursue a match/lead strategy.
Who should use this tool:
- Cabinet sponsors: Chief human resource officer and chief business officer
- Implementation team: Unit leader(s), hiring manager(s)/recruiter(s)
When to use this tool:
- When developing an HR strategic plan
- When developing a compensation philosophy
- When conducting a salary study
- Prior to allocating annual salary pool funds or net-new salary dollars
Salary Investment Navigator
Use the Salary Investment Navigator to understand, compare, and ultimately select which salary adjustments to prioritize on your campus. This tool will help you weigh the advantages, disadvantages, and use cases of various adjustment types so you can target adjustments in the highest ROI roles and/or functional areas based on your talent goals.
Who should use this tool:
- Cabinet sponsors: Chief human resource officer and chief business officer
- Implementation team: Director of compensation, unit leader(s), hiring manager(s)/recruiter(s)
When to use this tool:
- When deciding what salary adjustments to make following a salary study
- When deciding or educating unit leaders on where/how to distribute annual salary pool
- During annual budget planning and/or allocation meetings
This resource requires EAB partnership access to view.
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